"Supporting multiple generations can be very challenging," says Kathy Longo, a financial advisor with Accredited Investors in Edina, Minn. "But planning ahead -- and maintaining open lines of communication with both parents and children -- can make the task much more manageable."

A sound plan can help you save enough for retirement while supporting both older and younger family members. The key is to devote your resources toward your most important goals and obligations. Once this is done, you can develop creative plans to address any remaining issues. Here are four things to help you meet the challenge.

Saving for a retirement that may be 15 or 20 years away may not feel as pressing as, say, helping your mother pay her doctor's bill or buying your child a second-hand car to use at college. Putting your own long-term needs first may even feel selfish. But ensuring your own financial security is vital for the sake of everyone in your family, because it means you'll continue to be there for your parents and kids when they need you. What's more, you may have a number of alternatives for funding a college education or helping a parent, but not for paying for your retirement.

Once you've calculated your monthly savings amount, you can arrange for it to be automatically invested into a retirement savings plan such as a 401(k) or IRA. Make sure you take maximum advantage of any company matching contributions. Such contributions represent the easiest way by far to boost potential investment returns.

Also, make sure that your retirement savings are working as hard as they can for you. This typically means investing a portion of your savings in stocks and stock funds to take full advantage of the growth potential available in the stock market. A target retirement fund can help you allocate your assets among stocks, bonds and cash. For example, Fidelity's Freedom Funds adjust their asset mix based on the number of years until target dates such as 2010, 2015, 2020, and so on.

Boosting the amount you save toward retirement will leave you with less money for current expenses. That makes this a perfect time to start keeping a budget, if you don't already do so. You may have tried unsuccessfully to create a budget in the past, but you may have increased motivation to succeed now that you have greater financial responsibility for your kids, your parents, and yourself.

Start by tracking your spending for a month. You might want to save every receipt or carry a notepad and pencil to record each transaction -- the key is to find a system that works for you. Once you know where your money goes, organize your spending into categories such as home repair, utilities, debt payments, and groceries. Personal finance software can help with this task, but it isn't essential.

Next, look for places to cut back and free up cash. Common areas of unnecessary spending include frequent restaurant meals, unwatched pay television channels, redundant phone lines, pricey vacations, and late fees for tardy bill payments.

No. 3: Put college costs in perspective

The prospect of paying for college can feel downright overwhelming to many parents. Six-figure estimates of future college costs cause some parents to give up on planning altogether in the belief that they'll never meet the cost -- while other parents save so much of their income for college that they sacrifice other goals.

Believe it or not, you may be able to send your kids to college without breaking the bank. The key is to maintain your perspective on college costs and keep an open mind about the options you have.

If you're saving enough for retirement and also want to invest for future college costs, consider a 529 college savings plan. Investments through those plans grow tax-deferred, and you can withdraw money for qualified college-related expenses federal income tax-free.

Setting aside even a little bit can help. As little as $50 a month can add up over time. And make it easy by considering automatic monthly contributions to a dedicated college savings account. (Periodic investment plans do not ensure a profit or protect against loss in declining markets.)

Even if college is just a year or two away, it is never too late to start saving. "There are tax benefits to saving in a 529 plan or prepaid tuition plan, and every dollar you save is a dollar less you'll need to borrow," notes Joseph Ciccariello, vice president of college planning at Fidelity. Even if you haven't saved for your child's first year of college, you can start saving for his or her second, third, and fourth year.

Some parents feel guilty asking their children to take on college debt. But remember that you can help with the loan payments later on if you're well on your way to a comfortable retirement. It may be cliche, but it's true: You can borrow cheaply to pay for college, but not to fund your own retirement.

Families that must provide elderly parents with financial or other support, while also saving for retirement and raising children, may find their obligations to the older generation especially taxing. Start by seeing if you can help your parents help themselves. If they don't keep a budget, offer to help them create one, and then help them identify areas for saving. If you're concerned about their ability to manage their own spending, you might consider hiring a daily money manager to help them organize their financial records, pay bills, and adhere to their budget. That investment could save them substantial sums by preventing late fees and helping protect them from fraud.

Also review your parents' investments and insurance coverage with them or draw on the objective expertise of a financial professional if you fear these topics may be too sensitive. You may find, for example, that your parents hold their savings largely in low-yielding cash accounts and that shifting some of that cash into bond funds could help them generate significantly more income. Likewise, you may discover they hold whole life insurance policies that have accumulated cash values they can tap into -- or they're paying premiums on insurance policies they don't need.

"Having a frank, open conversation with parents can tell you a lot about their resources and financial situation," says Longo. "You may find that they have assets they can draw on to provide greater income."

These days, many older Americans hold a great deal of equity in their homes. Finding ways to tap this asset often can eliminate financial headaches for the whole family. Moving to a smaller home may free up tens of thousands of dollars or more for your parents' nest egg -- and could provide them with a smaller, more manageable living space that is better suited to their needs.

If your parents don't want to sell, they still have a number of options for tapping home equity. They may be able to draw on a home equity line of credit. Alternatively, your parents may be able to boost their nest egg significantly by selling the house to you or another family member and then making monthly rent payments to the new owner.

A number of government programs are available to help elderly people meet expenses, particularly for medical care. Make sure your parents take advantage of any benefits to which they are entitled; you can check which programs your parents qualify for at benefitscheckup.org. The AARP also offers a wide array of financial resources that can help seniors.

Finally, ask siblings, other relatives, and close family friends for assistance. They may be happy to help and take some of the pressure off you.

You want the best for your entire family, including a top-flight education for your children and security for your parents. Trying to provide for your own future and for older and younger generations can leave you feeling squeezed -- but prioritizing your goals, keeping a careful eye on spending, and finding creative solutions to financial dilemmas can help.